Bajaj Auto Sales Dips 5% In Two Days On Egypt Import Ban Concerns

Bajaj Auto is trading lower by about 2% at Rs 1,810, extending its antecedent day’s over 3% fall, on annual letters that Egypt government has proposed to appoint a one year ban on imports of two-wheelers and three-wheelers into the country.

While the accommodation is not yet final, the Egyptian chiffonier has accustomed the accounts admiral to appoint a ban if it is in the civic interest.

Bajaj Auto is the better exporter with annual dispatches of 5,000 units anniversary of two-wheelers and three-wheelers to Egypt.

The bike exports to Egypt annual for about 5% of absolute bike exports of Bajaj Auto, whereas, the three-wheeler exports anatomy a cogent block (around 25%) of absolute three-wheeler exports of the company.

In the accident that the proposed acceptation ban is implemented, analyst at Angel Broking expects the company’s absolute volumes to be impacted by 2-3%.

The net accumulation appulse is accepted to be college accustomed that Egypt bazaar is mainly for three-wheelers and fetches college margins to the company, said analyst.

The assemblage makes the Pulsar and KTM ambit of motorcycles. It had apparent a 50-day showdown amid administration and workers over pay acceleration and acknowledgment of abeyant workers aftermost year.

The banal opened at Rs 1,848 and affected a aerial of Rs 1,856 on the BSE. A accumulated 83,649 shares afflicted easily on the adverse so far on the BSE and NSE.

Shares of bike maker accept underperformed the bazaar by falling about 7% in accomplished four trading sessions as compared to 0.30% acceleration in criterion S&P BSE Sensex.